Visit http://indiaer.blogspot.com/ for complete details Gujarat Narmada Valley Fertilisers Company (GNFC) Q2FY11
Results – Inline with estimates – First Cut Analysis
Q2FY11 results for GNFC were inline with estimates. Highlight of the results was the
return to overall profitability as the company’s plant resumed operations. Revenues
for Q2FY11 at Rs 8.02 bn beat our expectations by ~22% yoy driven by higher than
expected fertiliser revenues. Revenues from the fertiliser segment at Rs 4.76 bn
were ahead of our estimates while chemical segment revenues at Rs 3.13 bn
remained inline.
EBITDA margins for the quarter declined by 310 bps yoy to 14.4% and were below
estimates of 16.9% mainly due to losses in the fertiliser segment. Fertiliser segment
reported EBIT loss of Rs 18 mn vs exp of Rs 34 mn. Margins from the chemical
segment also declined by 700 bps yoy to 29.1% but were ahead of our estimates of
25%. Consequently, chemical segment EBIT stood at Rs 911 mn (-15% yoy), ahead
of our estimates of Rs 781 mn.
GNFC reported APAT of Rs 639 mn (+5.3% yoy) and AEPS of Rs 4.1 for Q2FY11 as
against Rs 3.9 previous year. For H1FY11 the company has reported revenues of Rs
11.7 bn (-13% yoy), EBITDA of Rs 981 mn (-54% yoy) and APAT of Rs 412 mn (-
60% yoy). AEPS for H1FY11 stood at Rs 2.6 due to losses incurred in Q1FY11 due
to ammonia plant shutdown.
We are likely to maintain our earnings estimates and recommendation (BUY) on the
stock.
No comments:
Post a Comment